Michigan House Bill HB4997

Michigan 2023-2024 Regular Session

• Introduced: 9/14/23
• Refer: 9/14/23
• Report Pass: 9/20/23
• Engrossed: 9/20/23
• Refer: 9/26/23
• Report Pass: 9/26/23
• Enrolled: 9/27/23
• Chaptered: 10/3/23
• Passed: 10/3/23

Caption

Businesses: business corporations; annual report fees under the business corporation act; modify. Amends sec. 1060 of 1972 PA 284 (MCL 450.2060).

Impact

The implications of HB 4997 are significant for both domestic and foreign corporations operating in Michigan. By reforming the fee structure, the bill seeks to reduce the financial burden on businesses and streamline the process of regulatory compliance. This could encourage more companies to formalize their business status, which in turn could enhance economic activity within the state. Additionally, the waiver of fees for corporations owned by veterans is a notable attempt to recognize and incentivize veteran participation in the business sector.

Summary

House Bill 4997 is designed to amend the existing Michigan law regarding business corporation regulations, specifically modifying the fee structure associated with various corporate filings. The bill simplifies the fee process by standardizing the costs for filing documents with the state's administrator. This includes a uniform fee of $10 for several actions such as the application for a certificate of authority and amendments to the articles of a domestic corporation. Notably, the bill establishes provisions that waive fees for corporations significantly owned by veterans, aiming to support those who have served in the Armed Forces.

Sentiment

The general sentiment surrounding HB 4997 appears to be positive among proponents, who argue that the simplification of fees and the support for veteran-owned businesses indicate a progressive approach to promoting entrepreneurship. However, there may be concerns about whether such fee changes will fully address the broader challenges faced by businesses in regulatory compliance and overall economic conditions in Michigan.

Contention

Despite its positive reception, the bill has sparked discussions about the adequacy of its provisions and the extent to which it actually benefits small businesses versus larger corporations. Critics may question whether the standardized fee structure adequately considers the diverse needs of different-sized enterprises and whether the focus on veterans might overshadow other small business initiatives. Legislators need to ensure that while supporting veterans, the bill also encompasses protections and advantages for a broader range of businesses within the state.